DoD Awards $42.2M Firm Fixed Price Contract for Edwards AFB Flight Test Lab Construction
Contract Overview
Contract Amount: $42,182,705 ($42.2M)
Contractor: Korte Construction Company
Awarding Agency: Department of Defense
Start Date: 2021-09-28
End Date: 2025-06-14
Contract Duration: 1,355 days
Daily Burn Rate: $31.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 5
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: DESIGN & CONSTRUCT FLIGHT TEST ENGINEERING LABORATORY COMPLEX AT EDWARDDS AFB, CA
Place of Performance
Location: EDWARDS, KERN County, CALIFORNIA, 93523
Plain-Language Summary
Department of Defense obligated $42.2 million to KORTE CONSTRUCTION COMPANY for work described as: DESIGN & CONSTRUCT FLIGHT TEST ENGINEERING LABORATORY COMPLEX AT EDWARDDS AFB, CA Key points: 1. Significant investment in critical defense infrastructure at Edwards AFB. 2. Korte Construction Company secured the contract through full and open competition. 3. Potential for cost overruns or delays in large-scale construction projects. 4. Construction sector spending is substantial, with this project falling within commercial/institutional building.
Value Assessment
Rating: good
The contract value of $42.2 million for a flight test engineering laboratory complex appears reasonable for a project of this scale and complexity. Benchmarking against similar large-scale government construction projects would provide a more definitive assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating a robust price discovery process. This method generally leads to more competitive pricing by allowing all eligible contractors to bid.
Taxpayer Impact: Taxpayer funds are being utilized for essential defense infrastructure development, aiming for long-term strategic value.
Public Impact
Enhances critical testing capabilities for advanced aerospace technologies. Supports the economic activity in the Antelope Valley region of California. Contributes to the modernization of U.S. Air Force research and development facilities.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for construction delays impacting operational readiness.
- Risk of unforeseen site conditions requiring change orders.
- Dependence on a single prime contractor for project completion.
Positive Signals
- Investment in vital national defense infrastructure.
- Utilizes a firm-fixed-price contract to control costs.
- Awarded through competitive bidding, suggesting value for money.
Sector Analysis
This project falls within the Commercial and Institutional Building Construction sector. Government spending in this sector is often driven by infrastructure needs, military base improvements, and research facilities, with benchmarks varying widely based on project scope and location.
Small Business Impact
While the prime contractor is Korte Construction Company, the contract details do not specify any subcontracting goals for small businesses. Further investigation would be needed to determine the extent of small business participation.
Oversight & Accountability
The Department of the Army, under the Department of Defense, is responsible for oversight. Standard government contracting procedures and oversight mechanisms are expected to be in place to monitor progress and ensure compliance.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Potential for schedule slippage due to construction complexity.
- Risk of cost overruns from unforeseen site conditions.
- Dependence on prime contractor performance.
- Limited visibility into small business subcontracting opportunities.
Tags
commercial-and-institutional-building-co, department-of-defense, ca, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $42.2 million to KORTE CONSTRUCTION COMPANY. DESIGN & CONSTRUCT FLIGHT TEST ENGINEERING LABORATORY COMPLEX AT EDWARDDS AFB, CA
Who is the contractor on this award?
The obligated recipient is KORTE CONSTRUCTION COMPANY.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $42.2 million.
What is the period of performance?
Start: 2021-09-28. End: 2025-06-14.
What is the projected return on investment for this flight test engineering laboratory complex in terms of enhanced defense capabilities?
The return on investment is primarily measured by the enhanced capabilities for testing advanced aerospace technologies, which can accelerate development cycles, improve system reliability, and maintain a technological edge for national defense. Quantifying this in direct financial terms is challenging, but the strategic value is significant for long-term security.
What are the primary risks associated with the construction timeline and potential cost escalations for this project?
Key risks include unforeseen geological or environmental site conditions, supply chain disruptions for specialized materials, labor shortages, and potential design changes. These factors can lead to schedule delays and necessitate change orders, potentially increasing the overall project cost beyond the initial $42.2 million.
How effectively will this new facility contribute to the overall mission readiness and technological advancement of Edwards AFB?
The facility is designed to directly support advanced flight testing, which is crucial for validating new aircraft and weapon systems. By providing state-of-the-art engineering and testing capabilities, it will significantly enhance the base's ability to support cutting-edge defense programs and maintain technological superiority.
Industry Classification
NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction
Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: W912PL21R0005
Offers Received: 5
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 5700 OAKLAND AVE STE 275, SAINT LOUIS, MO, 63110
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $42,182,705
Exercised Options: $42,182,705
Current Obligation: $42,182,705
Subaward Activity
Number of Subawards: 79
Total Subaward Amount: $79,504,733
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2021-09-28
Current End Date: 2025-06-14
Potential End Date: 2025-06-14 00:00:00
Last Modified: 2025-08-07
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